Mumbai: Given the continuing momentum in the collection of corporate and personal taxes, the Income Tax department is optimistic about closing the financial year with direct tax collections breaching the Rs3,100 billion mark.

For the first time, direct tax collections have already crossed the Rs 3,000 billion mark. To put it in perspective, just about 15 years ago, year 1990-91 had the Centre's net direct tax collections at around Rs11,000 crore.

Tax deduction at source (TDS) has soared over 50 per cent this year, and is expected to bring around 35 per cent to the total direct tax collection kitty, as opposed to the 29 per cent it did last financial year. The income tax department is hopeful of collecting around Rs100 billion from TDS by 31 March, 2008. 

The final tally would only be available by April-end, after banks collate tax collection data. The Reserve Bank of India (RBI) has asked banks to stay open as late as possible to facilitate tax receipts on 31 March 2008.

As of the end of February, direct taxes, including corporate and personal income tax, had grown by over 40 per cent, at Rs2,326.76 billion. Advance tax collections from the corporate sector and personal income tax has shown a similar growth pattern, and has already touched Rs600 billion.